Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to the same quarter last year, though it declined from the prior quarter as operating cash flow decreased while capital spending remained relatively stable. Revenue improved sequentially and year over year, but the free cash flow margin narrowed from the prior period.
- Cash conversion weakened versus the prior quarter: operating cash flow as a proportion of revenue decreased, while capital expenditure absorbed a larger share of operating cash flow, resulting in lower free cash flow and a narrower margin.
- Compared to the preceding quarter, revenue increased but operating cash flow and free cash flow both declined, and the free cash flow margin halved. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow all improved, with free cash flow shifting from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$215.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$956.0M
Cash generated by operations before capital spending.
CapEx
$741.0M
Capital spending and related asset purchases.
FCF margin
6.6%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2025-03-31 | $2.2B | $1.1B | $563.0M | $533.0M | 24.3% |
| 2025-06-30 | $3.7B | $1.3B | $657.0M | $665.0M | 18.0% |
| 2025-09-30 | $3.0B | $1.2B | $775.0M | $426.0M | 14.4% |
| 2025-12-31 | $3.3B | $956.0M | $741.0M | $215.0M | 6.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 38.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 22.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating cash flow contraction
The quarter's operating cash flow was lower than the prior quarter despite higher revenue, signaling weaker cash generation efficiency. This more than offset the positive impact from capital expenditure that was marginally lower sequentially.
The primary factor behind the decline in free cash flow and margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened versus the prior quarter: operating cash flow as a proportion of revenue decreased, while capital expenditure absorbed a larger share of operating cash flow, resulting in lower free cash flow and a narrower margin.
Compared to the preceding quarter, revenue increased but operating cash flow and free cash flow both declined, and the free cash flow margin halved. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow all improved, with free cash flow shifting from negative to positive.
Monitor the trajectory of operating cash flow, as its decline this quarter offset the benefit of higher revenue and raised capital spending pressure on free cash flow.